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    Porter's Five Forces

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    This document summarizes Porter's Five Forces framework, which is used to analyze industry competition and business profits. It describes the five competitive forces as: (1) rivalry among existing competitors, (2) threat of new entrants, (3) power of suppliers, (4) power of customers, and (5) threat of substitutes. Each force is defined in one to two sentences.

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    Porter's Five Forces

    Uploaded by

    ceo
    18 views7 pages
    This document summarizes Porter's Five Forces framework, which is used to analyze industry competition and business profits. It describes the five competitive forces as: (1) rivalry among existing competitors, (2) threat of new entrants, (3) power of suppliers, (4) power of customers, and (5) threat of substitutes. Each force is defined in one to two sentences.

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    This document summarizes Porter's Five Forces framework, which is used to analyze industry competition and business profits. It describes the five competitive forces as: (1) rivalry among existing competitors, (2) threat of new entrants, (3) power of suppliers, (4) power of customers, and (5) threat of substitutes. Each force is defined in one to two sentences.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views7 pages

    Porter's Five Forces

    Uploaded by

    ceo
    This document summarizes Porter's Five Forces framework, which is used to analyze industry competition and business profits. It describes the five competitive forces as: (1) rivalry among existing competitors, (2) threat of new entrants, (3) power of suppliers, (4) power of customers, and (5) threat of substitutes. Each force is defined in one to two sentences.

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    You are on page 1of 7

    PORTER'S

    FIVE
    FORCES

    Oana Labes Mohamed ElRouby


    MBA, CPA ACMA, CGMA, FPAC, MBA
    Founder and President CFO MEA and Global
    Financiario.com Finance Lead
    Pharmanovia
    Swipe
    A deep understanding of Porter's 5 Forces
    will help CFOs and FP&A mitigate the
    potential loss of business profits in favor
    of suppliers, buyers, substitutes,
    competitors or new entrants.

    Porter's 5 Forces

    1 Rivalry among existing competitors

    2 Threat of new entrants

    3 Power of Suppliers

    4 Power of Customers
    Swipe

    5 Threat of Substitutes

    Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

    3
    1 Rivalry among Existing
    Competitors
    Measures the number of
    competitors and their ability
    competitors
    to undercut a company.
    + equivalent
    products

    competitive
    power

    2 Threat of new entrants Swipe

    Measures how specialized knowledge


    easily economies of scale
    competition cost advantages
    could arise from technical advantages
    new market patent protection
    competitors. barriers to entry

    Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

    3
    3 Power of Suppliers

    number of suppliers
    size of suppliers
    uniqueness of supplier Measures
    service or product how easily
    switching costs to suppliers
    another supplier can drive up
    ability to substitute the cost of
    inputs inputs.

    4 Power of Customers

    number of buyers or
    customers
    size of each order
    customer costs to switch to
    Measures another supplier
    customer customer price sensitivity
    ability to drive
    down prices Swipe

    Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

    3
    5 Threat of Substitutes

    Measures
    performance of
    customer the
    substitutes
    ease and ability
    cost to adopt a
    to switch
    substitute
    products

    goods or services
    that can be used in
    place of a company's
    products or services

    What's a SUBSTITUTES CAN BE


    DIRECT
    Substitute?
    (PEPSI - COLA) OR
    INDIRECT
    (PEPSI - WATER)

    Swipe
    Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

    3
    Ring the bell
    to never miss a post

    I am a financial strategist with over 20 years of


    business experience across several industries, 7 of
    which spent directly building companies as an
    entrepreneur, and 10 others advising and financing
    companies as a senior lender.

    Follow me at

    https://www.linkedin.com/in/oanalabes/

    Swipe

    3
    Ring the bell
    to never miss a post

    I'm a global finance leader with 20 years of experience


    in global multinational companies like J&J, Novartis,
    Allergan, Takeda, and Energizer. I'm also a global
    finance speaker and writer.

    Follow me at

    https://www.linkedin.com/in/elrouby/

    Swipe

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